Case analysis is a method used in business to assist managers, executives and clients in making important decisions about their departments and/or companies. Case analysis involves familiarizing yourself with your client's case, conveying your understanding their situation and key issues by critically analyzing and interpreting their "data," pinpointing their dilemma or problem, suggesting and evaluating options for solving it, and offering them sound, well thought through advice on how to proceed. All of this is captured and delivered in a professionally prepared written report (also known as a Case Analysis Report). Other times, this information is delivered by way of a professional oral presentation (also known as a Case Analysis Presentation). Both case reports and case presentations include the following elements:
STATEMENT OF THE PROBLEM
A very short paragraph (3-5 sentences) identifying (i) the decision-maker(s) and the decision he/she/they must make on behalf of the business firm (this may or may not be explicitly stated in the case), and (ii) any constraints, competing priorities, key issues and/or challenges faced by the firm and the decision maker that make the decision difficult (this frames their dilemma). Constraints and competing priorities are rarely explicitly identified in the case, and the student must use his/her own judgment, analysis, and reasoning to figure out what they are. This is more difficult for the student to do, but identifying them is crucial to solving the case because your final recommendation to the decision-maker (see related Section below) must address them. Sometimes, your statement of the problem comes from drawing conclusions during situation analysis (see next section), so it is not unusual to re-work a problem statement after completing the situation analysis. Here is an example of a reasonable problem statement:
The senior executive team of Whole Foods Market Inc (WFM) wants to see rapid growth for the company over the next 10 years. The bold objectives of the natural and organic foods retailer include expanding the footprint of the company from 340 to 1000 stores across all markets from 2012 to 2022. WFM currently operates most of their stores in the United States, but has shown interest in international growth by opening 8 stores in Canada (with 4 in development) and 7 in the U.K. over the past 10 years. The company has seen rapid growth in its 32 years of business primarily through mergers and acquisitions of existing smaller retail food chains, but it is not clear whether such a strategy will promote growth on the international market. As competition in the natural and organic foods market becomes fiercer every year, the senior executives of WFM must carefully settle on a strategy will meet their corporate growth objectives.
SITUATION ANALYSIS
Analyzing the client's situation (and their firm's situation) requires identifying and defining the key pieces of information at play in the case. It also involves doing some external research to interpret facts and data, and draw conclusions about the pieces at play and/or relevant facts presented in the case. A situation analysis will include many of the "Analysis" sections presented below, depending on the case. It is up to the consultant to determine which sections are most relevant to the case in question.
Analysis of the Ownership & Management, for example, might include a paragraph discussing the facts, research and conclusions related to the following questions:
• Are their many owners and managers?
• How complicated is decision making in this firm? Where is (are) the decision maker(s) in the firm's organization structure? Who needs to be consulted to make or approve a decision?
• What are the objectives, goals or preferences of the owners (or directors on the board or senior managers)?
• Do some of these people have conflicting or inconsistent objectives, goals or preferences?
• Other statements, conclusions, or interpretations of case information related to ownership and management.
Analysis of Current Strategy might include a paragraph discussing the facts, research and conclusions related to the following questions:
• What exactly is the firm's current strategy for achieving its goals, objectives, etc? These could be financial goals, or other targets.
• How is it trying to compete against other firms in its industry?
• Is it working?
• Other statements, conclusions, or interpretations of case information related to the firm's current strategy.
• Resist getting to specific here. Focus on what makes the firm unique in the industry. Also see analysis of industry, markets, and key success factors.
Analysis of Mission might include a paragraph discussing the facts, research and conclusions related to the following questions:
• Does the firm have a mission statement? If yes, state it.
• If so, is it consistent with what they are actually doing/how they run their business?
• If not, can you figure out what their mission is from the decisions they have made before now?
• Other statements, conclusions, or interpretations of case information related to the firm's mission.
Analysis of Current Markets might include a paragraph discussing the facts, research and conclusions related to the following questions:
• Who are their current customers? Are their customers the consumers and end users of their product or are they "middlemen"? What do their customers want from the product or service? What do the consumers or end users want?
• Do they have different types of customers?
• Are some types of customers more profitable (or more troublesome) compared to other types?
• How do they communicate with their customers?
• What is the firm's pricing like compared to the competition?
• How much market share does the firm have?
• Other statements, conclusions, or interpretations of case information related to their customers and markets.
Analysis of Financial Position, and other quantitative analysis might include a paragraph discussing the facts, research and conclusions related to the following questions:
• Revenue & cost structure? What are their primary sources of revenue? Primary expenses? Recent changes?
• Profit structure/profitability. How do they make a profit?
• Financing; How do they finance their operations? Self? Other?
• Other statements, conclusions, or interpretations of case information related to the firm's current and recent finances.
Analysis of Industry & Competition might include a paragraph discussing the facts, research and conclusions related to the following questions:
• What is (are) the industry(ies) in which the firm competes? Note that a single firm may be operating several lines of business (several different products and/or services).
• What's the latest (or then current) news/trends in this industry?
• Other statements, conclusions, or interpretations of case information related to the client's industry.
• Who are the other firms in its industry? Which firms dominate the industry in terms of size, resources, and market share?
• How do firms in the industry compete for customers? -- (a) low price, (b) leading edge product technology, (c) customized service to each customer, (d) efficient service, (e)high quality products, (f) heavy promotion & advertising? How does the firm in the case measure up to the way most firms in the industry compete?
• Other statements, conclusions, or interpretations of case information related to the competition. Analysis of Key Success Factors in the Industry might include a paragraph discussing the facts, research and conclusions related to the following questions:
• What are the most successful firms in the industry are doing well that less successful firms are not?
• What features or skills or resources or strategies are necessary for competing successfully in the industry?
• How does the firm in the case compare to its competitors with regard to these features, resources, skills or strategies?
• Firm's competitive advantage, if any?
SWOT Analysis - A thoughtful, well-organized summary of the firm's and/or decision-maker's...
• Strengths (internal factors that currently contribute to their success)
• Weaknesses (internal factors that currently hold them back from their potential)
• Opportunities (external trends, events, evidence on which they could capitalize)
• Threats (external trends, events, evident that could pose challenges)